= Prices of Mo and FeV continue rising, and prices of silicon metal and silico manganese are down =

The market trend of import of ferroalloy as of 13 May 2016 is as follows.

 

<> Silicon Metal = The price of silicon metal in China has dropped back since entering May, and the prices of 5.5.3 and 4.4.1 grades as of May 13 are CNY10,200 - CNY10,300 per ton and CNY10,700 - CNY10,800 per ton respectively, which are down by as much as CNY400 - CNY500 from the end of April. Albeit the operating rate of the producer is up by 7 - 8% from the end of February when the rate touched the bottom, it is still not at a high level, but even so, it seems the discounting battle occurs among the producers due to oversupply in the market resulting from the weak demand in China. Besides, as many producers in Yunnan are anticipated to restart operation during June to July, now the situation is the contract can be clinched at a low price for the cargo whose shipment is late because of a strong feeling of an anticipation of a price fall.

 

Also in the Japanese domestic market, both offer and contract prices continue declining due to weak demand and price drop in the country of origin. As the price for July shipment is cheaper than the shipments during May to June owing to the anticipation of a price fall, most of the customers purchase what they will consume immediately, for which some of the shippers dare to submit a low-priced offer having a thought of selling out immediately. At the present moment, the contract price of 5.5.3 grade product is down by around US$50 from the end of April.

 

<> Ferro-silicon = The price of ferro-silicon in China continues declining also in the first week of May, and the prices of products with Si being 75% and 72% are down by CNY250 and down by CNY100 - CNY200 respectively from the end of April. However, the price movement stopped from May 9, and the opinions are split on whether this means the price bottomed out or levelled off. However, some of the market participants forecast the price will drop again if the steel mills begin to float a tender for June purchase in late May. For a reference, the shipment of ferro-silicon by bulk carrier at the port of Tianjin does not seem to restart.

 

In the Japanese domestic market, the roundabout products via Vietnam is still scarce, and the demand for Chinese regularly exported products is increasing. For that reason, both offer and contract prices of regularly exported products maintained the same price as the end of April. On the one hand, as to the products distributed in the market, as Chinese cheap ferro-silicon which cannot be recognized as regularly exported products flows into the market, the price gets weakened and both offer and contract prices are down by around US$10. 

 

The price of Russian product was lowered as is the case in the last time. Both offer and contract prices are down by US$20 from the end of April, which was partly due to a price competition with Chinese cheap products in addition to continuing weak ruble.

 

In the current Japanese market, Chinese regularly exported products, Chinese cheap products, Russian products and Malaysian products are competing one another, the price competition among the shippers becomes intensified in the tenders issued by the steel mills and the net price of spot goods continues to taper down although scarce as a whole.